Mississippi is the Second Biggest Net Receiver of Federal Spending in 2013

Nov 04, 2015

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In the course of collecting taxes and spending money, the federal government inevitably creates “winners” and “losers” across the American landscape. In Fiscal Year (FY) 2013, Mississippi is the second biggest net receiver of federal spending relative to federal taxes paid.

As shown in Chart 1, Mississippi paid $6,695 per person in federal taxes in FY 2013—this was -38 percent below the national average ($10,722 per person) and ranked as the lowest level in the country.

Corporate Income Tax: The federal corporate income tax paid in Mississippi was $567 per person which was below the national average of $865 per person by -34 percent and ranked as the lowest in the country.

Payroll Tax: The federal payroll tax paid in Mississippi was $2,245 per person which was below the national average of $2,998 per person by -25 percent and ranked as the lowest in the country.

Excise Taxes: Federal excise taxes paid in Mississippi was $298 per person which was above the national average of $266 per person by 12 percent and ranked as the 10th highest in the country.

Estate and Gift Taxes: Federal estate and gift taxes paid in Mississippi was $26 per person which was below the national average of $60 per person by -57 percent and ranked as the 12th lowest in the country.

Custom Duties: Federal custom duties paid in Mississippi was $79 per person which was below the national average of $101 per person by -21 percent and ranked as the lowest in the country.

Miscellaneous Taxes: Federal miscellaneous taxes paid in Mississippi was $256 per person which was below the national average of $325 per person by -21 percent and ranked as the lowest in the country.

Deficit: The federal deficit, which is deferred taxation, accrued in Mississippi was $1,092 per person which was below the national average of $1,944 per person by -44 percent and ranked as the lowest in the country.

On the other hand, as shown in Chart 2, Mississippi received $11,669 per person in federal spending in FY 2013—this was 9 percent above the national average ($10,722 per person) and ranked as the 14th highest level in the country.

Federal Spending by Type in FY 2013:

Retirement and Disability: Federal retirement and disability payments (for example, Social Security and Medicare) in Mississippi was $3,748 per person which exceeded the national average of $3,318 per person by 13 percent and ranked as the 16th highest in the country (see our unique app showing federal pension data).

Other Direct Payments: Federal other direct payments (for example, the Earned Income Tax Credit) in Mississippi was $2,692 per person which exceeded the national average of $2,500 by 8 percent and ranked as the 16th highest in the country.

Grants to State and Local Governments:Federal grants to state and local governments (for example, Medicaid) in Mississippi was $1,836 per person which exceeded the national average of $1,811 by 1 percent and ranked as the 25th highest in the country.

Procurement:Federal procurement (for example, Department of Defense) in Mississippi was $2,018 per person which exceeded the national average of $1,337 by 51 percent and ranked as the 8th highest in the country.

Interest on National Debt: Federal interest paid on the national debt in Mississippi was $410 per person which was below the national average of $699 by -41 percent and ranked as the lowest in the country.

Of course, federal taxes paid and federal spending received do not flow evenly throughout the state. As such, we have also calculated the federal tax and spending ratios for every county in Mississippi—though this was based on slightly older FY 2010 data.

The top ten Mississippi counties with the highest federal tax and spending ratios include:

Wendy Warcholik

Dr. Wendy P. Warcholik has worked in public policy for nearly 20 years. She is currently the Director of the Family Prosperity Initiative at the American Conservative Union Foundation. She has also been at the Bureau of Economic Analysis, The Tax Foundation, and The Oklahoma Council of Public Affairs. She received her PhD in Economics from George Mason University (Fairfax, VA).